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U.S. construction faces strain amid worker shortages, material price hikes

U.S. construction faces strain amid worker shortages, material price hikes

Posted on December 9, 2024   |  

Labor shortages from immigration policies and rising material costs from proposed tariffs are creating challenges for the U.S. construction industry.

Undocumented workers make up over 13% of construction jobs nationally, with numbers exceeding 50% in states like California and Texas.

Mass deportations could worsen worker shortages, increase wages, delay projects, and reduce housing supply. 

Past deportations caused unfilled jobs, reduced productivity, and raised housing prices by 20%.

Tariffs, including a proposed 25% tax on Canadian goods and an existing 14.54% on softwood lumber, are expected to increase material costs.

Higher material prices are putting more pressure on the housing market, leading to higher construction expenses and slower project completion.